Here are the two most recent Toys "R" Us balance sheets. Toys "R" Us, Inc. and Subsidiaries Consolidated Balance Sheets Condensed and adapted for educational use In millions Fiscal year ending 1/28/2017 1/30/2016 ASSETS Current assets: Cash and cash equivalents 566 $ 680 Accounts and other receivables 255 225 Merchandise inventories 2,476 2,270 Other current assets 92 113 $ 3,389 $ 3,067 Total current assets 3,288 Property and equipment, net 3,163 Other assets 452 459 Total assets 6,908 $ 6,910 LIABLITIES AND EQUITY 2,738 $ 2,798 4,642 Current liabilities Long-term debt 4,612 820 765 Other non-current liabilities $ 8,200 $ 8,175 (1,292) $ 6,908 $ Total liabilities Total stockholders' equity (deficit) (1,265) Total liabilities and equity 6,910 Discussion Questions 1. Calculate the Toys "R" Us current ratio for the most recent two years. Interpret these ratios. 2. Calculate the Toys "R" Us quick ratio for the most recent two years. Interpret these ratios. How does the quick ratio compare to the current ratio? 3. Calculate the Toys "R" Us debt ratio for the most recent two years. Interpret these ratios.

Here are the two most recent Toys "R" Us balance sheets. Toys "R" Us, Inc. and Subsidiaries Consolidated Balance Sheets Condensed and adapted for educational use In millions Fiscal year ending 1/28/2017 1/30/2016 ASSETS Current assets: Cash and cash equivalents 566 $ 680 Accounts and other receivables 255 225 Merchandise inventories 2,476 2,270 Other current assets 92 113 $ 3,389 $ 3,067 Total current assets 3,288 Property and equipment, net 3,163 Other assets 452 459 Total assets 6,908 $ 6,910 LIABLITIES AND EQUITY 2,738 $ 2,798 4,642 Current liabilities Long-term debt 4,612 820 765 Other non-current liabilities $ 8,200 $ 8,175 (1,292) $ 6,908 $ Total liabilities Total stockholders' equity (deficit) (1,265) Total liabilities and equity 6,910 Discussion Questions 1. Calculate the Toys "R" Us current ratio for the most recent two years. Interpret these ratios. 2. Calculate the Toys "R" Us quick ratio for the most recent two years. Interpret these ratios. How does the quick ratio compare to the current ratio? 3. Calculate the Toys "R" Us debt ratio for the most recent two years. Interpret these ratios.

Name: Answer questions 1 though 3 Given that Toys "R" Us has declared bankru
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: Answer questions 1 though 3 Given that Toys "R" Us has declared bankruptcy, what are its Current, Quick, and Debt ratios?Toys "R" Us (see https://www.toysrusinc.com/investors) declared Chapter 11 bankruptcy protection in September 2017, for its US op

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks